The emerging phyllite mining industry in Ghana: economic potential and policy implications

Abstract

This paper examines the rapid growth of Ghana's emerging phyllite mining industry, focusing on its operational and regulatory challenges, economic benefits, and opportunities for improving environmental performance and business sustainability. The study employs an exploratory research approach, integrating field observations, interviews, document analysis, geological mapping, GIS modeling, and mineral economic evaluation. Findings indicate that phyllite mining represents a significant source of mineral revenue with the potential to drive economic prosperity and national development—provided miners undergo formalization. The industry has created thousands of jobs, stimulated local commerce, and generated substantial revenue for landowners and miners, aligning with the anticipated economic contributions of mining projects. Economic analysis suggests that mining a phyllite deposit spanning just 0.2 square kilometers in the Tarkwa mining district could yield over US$2.3 billion. Further investment in exploration could identify additional reserves, enhancing the industry's long-term economic viability. Despite its economic potential, regulatory challenges threaten the industry's sustainability. Pragmatic and accessible regulations are essential to formalizing miners and ensuring compliance with standard mining practices. Post-formalization strategies, such as miner education and training, stringent regulatory enforcement, routine site monitoring, and penalties for noncompliance, are critical to maintaining sustainable operations. These measures will help align mining activities with environmental, social, and governance (ESG) principles while promoting long-term industry resilience.